May 04, 2013Comments Off on Renewable Energy and Energy Efficiency: Eight FAQsby k.stemper@ufl.edu

The BoKIR has added material on the involvement and mandate of the energy regulator with regards to rules affecting Renewable Energy (RE) and Energy Efficiency (EE). The renewable technologies include solar, wind, geothermal, biomass, and hydropower. The RE policies include Feed-in Tariffs, Net Metering, Renewable Portfolio Standards, Auctions, Power purchase agreements, direct investment support, and other incentives for RE development (resource mapping and encouraging NGO involvement). The policies are not mutually exclusive. Also, EE can be promoted via utility actions (incentivized by the regulator and actions by other agencies). The former include reduced line losses, improvements in load patterns and system reliability, decision-relevant customer billing information, energy audits, and smart grids. The latter include setting appliance standards, providing government financial support, creating tradable certificates, awarding tenders, and establishing government programs like improving EE in schools and hospitals. First, we start with the mandate of the energy regulator in promoting RE and the main challenges faced by the agency. Regulatory functions determine how specific policies affect incentives affecting investments in RE technologies.

Readers will see that the responses focus on what sector regulators can do, not what nations “should do.” The FAQs are not meant to be comprehensive tutorials on the issues but to serve as maps that can guide regulators and infrastructure managers to more detailed material.

The issues surrounding access to electricity and approaches to more sustainable and environmentally-friendly energy sources are complex. Stakeholders have a wide range of views on the cost-effectiveness of different technologies and the extent to which alternative energy should be promoted in the developing world. The purpose of the new FAQs will be to outline the key issues for those agencies implementing public policy towards renewable energy and energy efficiency. Additional cases and information on laws are available online at PPP in Infrastructure Resource Center for Contracts, Laws, and Regulation (PPPIRC) and Private Participation in Infrastructure Database.